Difference between Bond and Share Explained by Faizul Sir #faizulsir #upsc #uppsc #ukpsc #bpsc

Difference between Bond and Share Explained by Faizul Sir #faizulsir #upsc #uppsc #ukpsc #bpsc #economyforupsc #bond #share The video explains the difference between bonds and shares (0:00). Here's a breakdown of the key distinctions: Bondholders vs. Shareholders Risk (0:08-0:14): The video highlights that bondholders face relatively less risk compared to shareholders. This is because bondholders receive a fixed return regardless of the company's profit or loss (0:26-1:07), while shareholders' returns are directly tied to the company's performance (1:09-1:22). If a company incurs losses, a shareholder's investment can be entirely lost, which is not the case for bondholders (1:31-1:43). Creditor vs. Owner Status (1:47-2:02): Bondholders are considered creditors of the company, meaning they lend money to the company (1:47-1:56). In contrast, shareholders are owners of the company (1:57-2:02). Repayment Priority (2:02-2:22): In case of company repayment, bondholders are given priority over shareholders. This means bondholders are repaid first (2:09-2:21). The video concludes by reiterating that these two reasons explain why bondholders have less risk than shareholders (2:22-2:48).